The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1887-03-10
THE B. & 0. DEAL.
The Hubbub 1t Is Causing
Among Railroad Men.
AN ENORMOUS TRANSACTION
why the President refused tn Sign
Certain BfiIs-On ertain Con-
ditiOns-Etc.
The baltimore and Ohio Zeal

The Baltimore and Ohio Deal
New YORK, March 9-An evening
paper, commenting on the Baltimore
& Ohio IDEAL" says: BY the will OF
the elder Garrett, the president of the
Baltimore & Ohio was restrained from
the liquidation of his railway stock
within twenty years, and that period is
still distant Just how the lawyers got
around the difficulty is not well known,
but it is supposed that Garrett placed in
e crew his own hCl iings' amounting to
about third of the stock of the road.
For the other shares he had to persuade
| the trustees of the John S. Hopkins
estate and the representatives of the
State of Maryland and City of alti-
more to part with their large
holdings at 81. so, the rate agreed upon.
He succeeded in the negotiation and il
is said that the purchase price of the
stock will be paid in 100000 per
cent. longtime bonds, the remainder in
cash." The followingis also published:
AS the matter now stands, Garrett has
gi ven written agreement of what he
will do in the premis es and this includes
a majority of the stock. The figure is
said to be between 5000 and 1920. Mr..
Sully and Mr.. Garrett have signed
preliminary contract and the finances Of
the Baltimore & Ohio are being exam
ined by parties identified with the First
National Bank syndicate, which is TO
furnish money to buy the property.
So far as this investigation has gone, it
| is favorable, the floating debt, which
has been reported at $4,000, 600 to $15,-
600 900, having been found to be only
about 81 900 900. The amount required
to complete the purchase will be about
| $17 900, 900. There was some talk to-day
about holding certain amount of stock
in trust, and which cannot be sold
in escrow. and issue ten-year 5-per-
cent bond for the same, but this is an
outside matter. and the understanding
is that Mr.. Garrett is to deliver d
working majority. Gould, up to the
present time, has had no dealing with
the deal, but if the same is carried
through, he will, of course, appear in
the interests of the Western Union, as
one of the objects of the scheme is to
create harmony in telegraph as well as
railroad matters.
/ The Tribune of tomorrow, will say
the option on the controlling interest in
| the Baltimore & Ohio Railroad. recently
obtained by Alfred Sully, in behalf of
the syndicate of New York capitalists,
was not exercised yesterday. It is
probable that the privilege will be
settled in a few days, when
the terms for subscription by
the syndicate can be arranged. A.
change of ownership may be officially
announced to-day. 1t is understood
that the contract with President Gar
rett provides for the transfer by him to
| cuv1IiAa+A Of g 001 al NJ RoIti-
more & Ohio stock at $500. The amount
of the purchase money is therefore
/ Sic, 200, 900, of which Mr.. Garrett insists
/ upon payment in cash of $6,000,0 goo.
/ The remaining 100000 may be
paid at any time within one year, but
| when final payment has been made the
entire block of stock is to be held in
| trust 6nder certain conditions, which
have not yet been made public. Moth
ing in these terms is likely to interfere
with the accomplishment of the general
purpose, but in the meantime persons
acknowledged to be largely interested
in the plan are disposed TO withhold in
formation in regard to the date of as
signments.
The syndicate comprises Calvin S.
Brice and General Samuel Thomas, of |
East Tennessee; George Scott, formerly |
VI luG u Odnf14C3
George F. Baker and H. G. Fahnestock, |
the president and vice president of the |
First National Bark, and their assOci- !
atas in southern railroad enterprises, /
in addition to Mr.. Sully and Austin
Corbin. There are many surm ises, OF |
course, as to other interests involved III |
the transaction, but in the absence of |
positive action. known members OF the |
syndicate decline to make public |
the names of their associates, or the eX- |
tent of the rami6cations involved in the /
radical change OF ownership and man
agement of one of the oldest railroads |
in the country. Alfred Sully, in re-
Spouse to inquiries regarding the Trib- |
aIne account of the negotiations, |
said. with a good deal of heslta-
ton: Yes, that was an interest |
irsg story. I guess it was pretty well /
four ded on facts, but l do not think |
that the situation is quite as broad as |
you represent it. Nothing has yet been !
done, and-I do not care to talk until to-
morrow"
What about the relations of the
Adams Express Company involved in !
the negotiations ?"
Mr.. Sully deliberated for some |
seconds, while bis lips were well pur ed |
up, and then ne said sCwy: 81 don't |
think that any question has been under
discussion except the CONTROL Of the 3.
d o."